Reverse Mortgages NSW: Loan Scenario of the Week
Mr F (aged 80) and Mrs F (aged 73) live in their unencumbered home in the Sydney Upper North Shore. They have lived there for 34 years.
Mr F was an engineer, he has retired completely now, and Mr & Mrs F receive the full Centrelink aged pension.
Mr and Mrs F have an investment that has been performing badly since Covid started and so an expected income has not materialised from it.
They have a yacht worth around $300,000. They want to be able to keep using the yacht regularly. They have done considerable travelling around Australia and the world and now look forward to using the yacht.
They have one outstanding liability which is a result of Mr F’s accountant making an incorrect claim for Covid assistance. This is being paid off by a $1,000 payment each month for the next 10 months.. This is reducing their available cash flow for living expenses.
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The F’s are planning to use their Reverse Mortgage as a credit line to supplement their income so they can maintain their lifestyle and continue using their boat. They will also do some travel around New South Wales and Australia. They are getting a loan facility of $270,000.00 which they will draw down as they need.
They expect the requested loan to last them for their lifetime. The pension pays their necessary living costs. The reverse mortgage funds are more for their discretionary spending such as the boat use and some travel.
(Client Names, Ages and Locations have been changed to protect our clients confidentiality.)
Reverse Mortgages NSW: Loan Scenario of the Week (03/02/2023)
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